195 Code/177
The Legal Adviser ( Hackworth ) to the Secretary of State
The Secretary: Referring to your memorandum of conversation of March 29, 1934, with the Danish Minister, I attach a copy of the Joint Resolution 207, approved March 26, 1934, to which the Minister referred.
It will be noted that the resolution states it to be the sense of Congress that, in any loans made by the Reconstruction Finance Corporation or any other instrumentality of the Government to foster the exporting of agricultural or other products, provision shall be made that such products shall be carried exclusively in American vessels, except when the Shipping Board Bureau certifies to the Reconstruction Finance Corporation or any other instrumentality of the Government that vessels of the United States are not available in sufficient numbers, or in sufficient tonnage capacity, “or on necessary sailing schedule, or at reasonable rates”.
[Page 705]As I understand the situation, the resolution is not a law in the ordinary sense of the term, but is merely an expression of the Congress as to what the policy should be with respect to such matter[s]. It did not require approval by the President but apparently was approved by him, thus indicating that it has been adopted as the policy of the Government. Except as such an indication of policy, it is not obligatory, although I presume that no administrative official would feel free to disregard its provisions.
Article VII of our Treaty of 1932 with Norway29 provides that:
“All articles which are or may be legally imported from foreign countries into ports of the United States or are or may be legally exported therefrom in vessels of the United States may likewise be imported into those ports or exported therefrom in Norwegian vessels, without being liable to any other or higher duties or charges whatsoever than if such articles were imported or exported in vessels of the United States”.
It is believed that enforcement of the resolution would be violative of this treaty provision, since it would not allow Norwegian vessels national treatment as regards such exports which it was the purpose of the treaty to accord with respect to all exports. Similar provisions are contained in a number of our treaties with foreign countries.
Article III of the Convention of 1826 with Denmark30 provides in part that:
“… whatever may be lawfully exported or re-exported, from the one country in its own vessels, to any foreign country, may, in like manner, be exported or re-exported in the vessels of the other country.”
When the bill S. 2401,31 providing “That at least 50 per centum of the commodities purchased by or on behalf of any foreign country with the proceeds of any loan hereafter made by the Reconstruction Finance Corporation or any other governmental agency and which are exported from the United States shall be exported in vessels of the United States, and each contract or agreement for any such loan shall contain a condition to that effect” was under consideration, the Department on March 3, 1934, sent a letter32 to Senator Stephens, Chairman of the Senate Committee on Commerce, calling attention to the treaty provisions with Norway and suggesting that the bill be not passed. (File No. 195/1385) That bill did not pass and the present resolution was apparently substituted for it.
I would suggest that a letter should be sent to the Reconstruction Finance Corporation and the Secretary of Commerce calling attention [Page 706] to these treaty provisions in order that they may not apply the resolution in such way as to violate our treaty obligations.